Wednesday's Winners (& Why): CTIC, LEE, and WLT Have Something Most Other Stocks Don't Right Now
Though futures are up again in pre-market trading on Wednesday, there's still something uneasing about the recent rally; it doesn't feel like it's built to last. Yet, there are a handful of stocks - like Walter Energy, Inc. (NYSE:WLT), Cell Therapeutics Inc. (NASDAQ:CTIC), and Lee Enterprises, Incorporated (NYSE:LEE) - that look ready to keep rolling higher no matter what the broad market does from here. Take a look. 
Through September of last year, Cell Therapeutics Inc. had done little but dole out disappointment to investors. But, beginning in November (following one final plunge to a low of $1.14), CTIC finally started to perk up. That didn't become evident until just the past few days, but now that the clues are in place, this little biotech name has become a big trading opportunity.
The key is the resistance line at $1.55. That's where CTIC struggled in October. The stock pushed its way above there on January 8th, only to fall back - and have trouble with the $1.55 mark again - on the 9th, where it's been content to trade under since.... until yesterday. On Tuesday, Cell Therapeutics one again made its way back above $1.55, this time at a more sustainable pace, and this time, at a more sustainable pace of rising volume. Though the stock's poised to open in the red this morning, the bullish damage is done. 
If the name Walter Energy, Inc. rings a bell, it might be because I posted some bullish thoughts on it back in October (and have been posting some bullish thoughts about coal in general since around that time). Though WLT shares ended up heading south and hitting new lows just a few days after my optimistic commentary was penned [once again confirming that I'm not infallible], the stock's spent the last several weeks getting itself back into a position for a major breakout move.
The nearby weekly chart of WLT shows a well-defined V-shaped reversal move. The key is getting above the horizontal resistance line around $38.90, where Walter Energy shares have struggled since August. Yes, the stock technically closed above that mark on Wednesday, though this is a bigger-picture effort that needs more than one day's confirmation to step into. On the other hand, all big trends start as small ones, and the biggest gains are usually doled out to those willing to stick their necks out. 
Last but not least, Lee Enterprises, Incorporated may not have been a name you've heard recently talked about in a bullish light, but, it is what it is. After drifting into new LEE multi-month low territory in late December, this chart has quietly inched its way back into a bullish trend, fighting its way back above the 50-day moving average line last week. It's paused there for the time being, but the bullish storm appears to be brewing.
One of the subtle nuances with LEE is the rising volume we've seen since last week when the stock started to move higher. Though there's still a minor horizontal resistance line at $1.27 that needs to be cleared, Lee Enterprises is definitely a name you'll want to add to your bullish watchlist.
James E. Brumley is a paid contributor of the SmallCap Network. James E. Brumley's personal holdings should be disclosed above. You can also view SmallCap Network's complete disclaimer and disclosure.
Do NOT buy or sell WLT, LEE or CTIC until you have read everything.
SmallCap Network provides comprehensive research and opinions on WLT, LEE and CTIC. |
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| Date: | May 24, 2013 | |
| Price: | Free | |
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